Chinese exports grew more than twice as fast as expected thanks to the relaxation of corona restrictions in May. They increased by 16.9 percent compared to the same month last year, according to data released by the customs authority on Thursday. Analysts had expected an increase of just 8 percent after exports rose just 3.9 percent in April.
The authorities had the strict lockdowns eased in major cities like Shanghai, which boosted production there again. The electric car manufacturer Tesla For example, production levels returned to normal at the end of May after the Shanghai plant had taken a three-week forced break. Freight throughput in ports and airports also returned to normal values. In Shanghai, for example, 95.3 percent of the normal level was reached at the container port at the end of May. Shanghai is the world’s largest container port.
Container port Shanghai reaches almost normal level
“Logistics and supply chains were well repaired in May,” said Yingda Securities Research Institute director Zheng Houcheng. Imports also grew for the first time in three months, by 3.9 percent. Still, it points to continued weak domestic demand, Zheng said. This is bad news for the German economy, after all China one of their most important sales markets.
Despite major risks such as the Russian war against the Ukraine and rising raw material prices, experts predict that the export world champion should continue to do good business in the coming months. “We believe that if there are no more lockdowns, this recovery can continue,” said ING China chief economist Iris Pang.
China’s government recently presented a package of stimulus measures. The central bank, meanwhile, is trying to stimulate housing construction by lowering interest rates on mortgage loans. Beijing is aiming for economic growth of around 5.5 percent this year. That will be difficult to achieve, analysts say, unless the government abandons its zero-Covid strategy of strict lockdowns even during minor outbreaks.